The FairTax Book: Saying Goodbye to the Income Tax and the IRS

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The FairTax Book: Saying Goodbye to the Income Tax and the IRS

4.14 of 5 stars 4.14 · rating details · 1,059 ratings · 186 reviews

Wouldn't you love to abolish the IRS ... Keep all the money in your paycheck ... Pay taxes on what you spend, not what you earn ... And eliminate all the fraud, hassle, and waste of our current system?

Then the FairTax is for you. In the face of the outlandish American tax burden, talk-radio firebrand Neal Boortz and Congressman John Linder are leading the charge to phase o...more

Hardcover, 224 pages

Published August 2nd 2005 by ReganBooks (first published 2005)

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Feb 12, 2008 Lauri rated it 4 of 5 stars

Shelves: finance

This is a very hard book for a bleeding-heart liberal girl like me to read. As an adult, I have come to believe that the income tax is a punitive tax for middle class and especially lower class people. However, for those wealthy people who manage to scrape up enough cash for a vacation home, a yacht, and multiple luxury cars, I doubt that the income tax is truly impeding their ability to eke out a life of quality and security. I am a middle class American, and, while my taxes are high, they do n...more This is a very hard book for a bleeding-heart liberal girl like me to read. As an adult, I have come to believe that the income tax is a punitive tax for middle class and especially lower class people. However, for those wealthy people who manage to scrape up enough cash for a vacation home, a yacht, and multiple luxury cars, I doubt that the income tax is truly impeding their ability to eke out a life of quality and security. I am a middle class American, and, while my taxes are high, they do not impede upon my ability to own a car, own a home, save for my retirement and have some fun in the meantime. So, while I am skeptical about removing the income tax from the wealthy, I am generally open to the concept put forward in this book: tax on consumption. This way, you can keep your money if you choose not to spend. Simple enough.

I'm only 10 pages in currently and already the authors have said some things that make my skin crawl. Not the least of which was pointing out that the American civil war wasn't "technically" a civil war---how this is relevant to the book's topic I'll not understand, but it points to some deeper felt (and weird) principle that the author must ascribe to. My concern is that the authors of this book, admittedly, have much bigger plans for basically abolishing the role of the Federal government and cutting taxes (although they point out that these topics are off-point for this book). While I am a big proponent of federal fiscal responsibility, I am also adamant that we keep/establish a handful of social programs as any wealthy country has an obligation to do to protect its many, hard-working citizens. Any capitalist society has to have an air of socialism to it or it will crumble. Just one example of this was the Great Depression when the capitalist system came to a crash and there were no programs in place to protect the citizens. Capitalism is a concept that provides certain freedoms, but that thrives on greed. Any society thinking that it can succeed based upon a system of individual gain alone will pursue such a concept at its peril. I'll read this book through and give them a chance to persuade me. As long as my fears are allayed that this is not simply a plan for the rich to get richer while the poor stay poor, this might be a tax plan I could back. Life is about "we" not "me" and my hope is that this tax plan supports rather than detracts from that basic credo.

After concluding the book, I found the new tax plan radical, but fair. It really does seem to make good sense. I found some of the conservative rhetoric in this book offensive, but it didn't detract from what seems to be a way better, and more simple tax system than what we have today. It's definitely worth the read. (less)

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Sep 30, 2007 Tammi rated it 5 of 5 stars Recommends it for: anyone who votes

This is a must read for anyone who votes and requires government accountability for the spending of our tax dollars. It is an easy read in easy to understand language and Boortz adds a bit of humor.

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Feb 10, 2008 Robert rated it 4 of 5 stars Recommends it for: anyone who pays taxes

Shelves: non-fiction

I'm not an economist, but the principles of this book seem sound and its implications profound. I've done some research into the common objections to this plan, and none seem to hold their weight. The elegance and simplicity of a consumption tax, coupled with the benefits for the economy seem to make it a no-brainer.

Boortz, although witty at times, tries a little too hard to be funny. Some of the explanations, while supporting sound principles, have a bit too much of a deceptive marketing spin f...more

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Oct 08, 2008 Jeff rated it 5 of 5 stars Recommends it for: anyone who thinks the IRS has too much power & believes in a more fair and simple tax code

Recommended to Jeff by: my good friend, Matt Pitts

I'm not an economist, but not only did I read this book in a morning, but I actually understood it! After reading this book, I don't see how anyone could be against the Fair Tax, a proposal currently in the Congress that would actually abolish the IRS and replace income taxes with the fair tax (which is NOT a flat tax or a VAT tax). It is actually quite entertaining throughout with lots of humor and simple explanations.

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Dec 03, 2007 Marcia rated it 5 of 5 stars Recommends it for: everyone

I was really impressed by this book, and I'm definitely going to do my part to help the FairTax get signed into law and the income tax repealed. I knew the IRS was bad, but I had no idea how wasteful and unfortunate the income tax is until I read this book. It doesn't matter what your politics are, at the very least this book will make you rethink your support of the income tax.

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Oct 25, 2007 Mike rated it 2 of 5 stars

Shelves: economics, politics

Is the national sales tax a good idea? Sounds a bit too much like a silver bullet. I hate paying income tax as much as the next guy, but this seems too simple. The arguments against the tax are dismissed with supposed benefits of the tax, some of which seem downright miraculous.

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Nov 20, 2008 Jarrod Jenkins rated it 5 of 5 stars

Shelves: nonfiction

These important pages contain an indictment of the Rube Goldberg monstrosity that is our current tax code and a beautifully elegant solution to the problem.

I am obsessed with the idea of the FairTax, a national retail sales tax, because it provides numerous benefits and no insurmountable drawbacks. It would eliminate the IRS and hundreds of billions of dollars in compliance costs alone. It would reward saving, work, and effort. It is automatically progressive in that those who spend more will pa...more

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Sep 14, 2008 Peter rated it 1 of 5 stars

I saw Neal Boortz during some economic policy "round table" on television and heard a bit about Fair Tax. The premise of this movement is that income tax of every sort (regular income tax, payroll tax, estate tax, investment tax) should be abolished and replaced with a 23% sales tax on everything. Sounds simple, vaguely Steve Forbesian, but would it work. My first instinct was to think, wow, this is preposterous. If we have marginal taxation rates in the mid-30% range, how will a 23% sales tax y...more I saw Neal Boortz during some economic policy "round table" on television and heard a bit about Fair Tax. The premise of this movement is that income tax of every sort (regular income tax, payroll tax, estate tax, investment tax) should be abolished and replaced with a 23% sales tax on everything. Sounds simple, vaguely Steve Forbesian, but would it work. My first instinct was to think, wow, this is preposterous. If we have marginal taxation rates in the mid-30% range, how will a 23% sales tax yield the same amount. So, in an effort to be open-minded and see both sides of the issue, I got this book (from the library).

And I read it. On one level, the book was impressive. It was an illustration of how, when authors have an agenda, they can write things as fact with little or no substantiation. There are few central issues with National Sales Tax plans (From this point forward, I'm refusing to call it Fair Tax-- this name suggests that it is fair relative to other tax plans, such as our IRS-administered one, and there is no evidence this is true. Also, the naming of the plan is word-play trickery; if you're against the plan, what do you want, UnFair Tax? This kind of nonsense is so pervasive in the book, it actually amazed me. But more on this in a bit). First, will the proceeds of the sales tax be as much as the proceeds of the the existing or some other alternative tax plan. Second, will the sales tax push the burden on to the poor? A few notes on each.

The authors never make it clear that the proceeds from their tax plan would yield the same revenue as the current system. I expected to see some numbers, saying, for example, today x number of people pay on average y number of dollars. Under our plan, a people will pay b dollars. Something. Anything! They make two propositions, which they repeat ad nauseum (until, I guess they go from being theory to fact with no testing). First, there will be the same amount of money. Second, the economy will grow so much that no one will care because everyone will be rich! They occasionally cite "studies" by "economists" that support their contentions. However, they only cite a couple of studies from the Cato Institute (which is hardly a peer-reviewed academic journal). So there is no evidence that any of what they say would actually happen. I guess you can't just quote Milton Friedman a couple of times and say you have all the answers.

They are really calling for an end to progressive taxation. They take great pains to suggest this is not the fact. They say they are not class warriors. In fact, they take swipes at the real class warriors, presumably those commies who passed the income tax in the first place, and those bleeding hearts who continue to allow the rich to be taxed at all. But they try to have it both ways. They gripe about how a large proportion of lower-income Americans don't pay any taxes (and even receive help from the government in the form of certain tax credits). Then they say their plan will remove all these benefits and make the poor and lower-middle class pay taxes. So how does this not shift the burden more to the poor? Their (weak, ill-conceived) counter-argument is that no one will be as poor, because the economy will be better and paychecks will be bigger. Again, given that this is completely unsupported by any evidence that they present, it is a hard pill to swallow.

This gets me to my biggest issue with this book. It is a fundamentally dishonest work. They claim their issue is with the inefficiency and waste of income tax and the IRS. But they seem to have a bone to pick with progressive taxation, which many citizens (at least the progressive ones) consider one of the hallmarks of our civilized society. They say that this will help everyone, but if they are really reading economics as much as they want it to appear they do, they'd know there is no such thing as a free lunch. If things get better for one person, they get worse for someone else. If they were just honest about what they were doing ("We want to lower taxes on rich people and unleash the power of the invisible hand") at least they could be assailed on that point. But in this propaganda pamphlet, they try to portray themselves as some sort of modern taxation Robin Hoods. But they have no interest in stealing from the rich.

I'm on to them, and I'm going to figure out a way to stop them. They rely on the fact that many of the people who would be hurt by their plan would never have the wherewithal to read and learn about it. And that is what needs to change.

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Feb 08, 2013 Zach rated it 5 of 5 stars

I don't think I'll get many disagreements when I say the current tax code in this country is a failure. Having read "FairTax: The Truth," I was anxious to learn more about this piece of tax legislation. I picked up "The FairTax Book," and I was not disappointed. Neal Boortz and Rep. John Linder lay down the problems regarding our current federal income tax system, and offer the solution: The FairTax.

To summarize the FairTax, it will remove all forms of taxing in this country--including payroll t...more

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Jan 13, 2013 Tom Teague rated it 4 of 5 stars

This is an important topic for any American citizen to read and seriously consider. We are under the illusion that we have a progressive taxation system, but most people do not think about the straight, flat 15.3% payroll tax that everyone pays regardless of income level, because it is hidden. We pay half in our pay checks and employers pay half of it directly to the government, without our general knowledge. When you think about the fact that you are already paying 15.3% flat tax, the idea of 2...more This is an important topic for any American citizen to read and seriously consider. We are under the illusion that we have a progressive taxation system, but most people do not think about the straight, flat 15.3% payroll tax that everyone pays regardless of income level, because it is hidden. We pay half in our pay checks and employers pay half of it directly to the government, without our general knowledge. When you think about the fact that you are already paying 15.3% flat tax, the idea of 23% retail sales tax on new purchases doesn't seem like as big a stretch as you might think when you first hear about the idea, and the simplicity of the idea is appealing. We are all used to paying sales tax. It raises your awareness of the cost of government, because it is visible with every retail purchase you make.

The Fair Tax is progressive in that it is possible to pay essential living expenses tax free through the tax "prebate" feature, which could also be called a tax credit.The difficulty that is not discussed in the book is how to determine what "essential living expense" means. The current FairTax prebate is based on Federal poverty guidelines, which are uniform across the country, but the reality is that "minimum essential" living expense is variable, depending on your geographic location.

The book is an easy read, but clearly it is written from the standpoint of advocacy for the Fair Tax. The Fair Tax is based on economic research where several alternative taxation systems were considered, but this is not the emphasis of this book. This book was written from the standpoint of informing the reader about what the Fair Tax is, how it would work, and how this approach to taxation could have multiple benefits to individuals, to businesses and the overall economy. I gave it four stars, because I'm not sure the book was as balanced in perspective as it could have been, and unfortunately this undermines the overall message.

One of the reasons I believe this approach is important to consider is that it removes the ability of Congress to play favorites through hidden special-interest income tax loopholes and subsidies. It will make Congressional action more transparent, because, with FairTax, the primary focus of government will become more on how do we spend our tax revenues and less on how can I protect special interests who finance elections from paying income taxes.

Another reason to consider Fair Tax is that it decouples government revenue from unemployment rates, but again, this is not emphasized in the book. One of the primary reasons for the government deficit is that the unemployment rate has been too high for too long, and therefore payroll tax and income tax, which is 80% of the revenue base, has been significantly reduced through unemployment.

One of the main reasons that Fair Tax is appealing is that it is simple and efficient. It reduces cost of government by eliminating the IRS, and it helps business and individuals become more efficient by eliminating the considerable unproductive waste of time, money and energy trying to minimize the confiscation of income by the government. It broadens the tax base, because those who avoid paying income tax, legally or illegally, are consumers and buy things therefore catching revenue from criminals who currently don't pay income taxes.

When you think about it, Fair Tax is "fair" because it is voluntary rather than confiscatory. If you want to pay less tax to the government, than you will spend less on new purchases. It therefore it becomes a matter of free will choice rather than compulsion under the law.

My recommendation is to start reading here with this book, but keep reading other resources about the Fair Tax to find other viewpoints to balance your perspective. It is an important topic that shouldn't be ignored.(less)

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Feb 01, 2012 Mckinley rated it 1 of 5 stars

Shelves: non-fiction, finance, gov

About a single tax - consumption - replacing income tax. Important topic, needs revision for sure.
There are many less biased sources with more detailed descriptions of realistic scenarios.

- Many comments about size of returns from income tax rather than knowing how much tax one pays. Seems to me that if one cares, one can find out very easily. And one can adjust one's withholding to withhold less during the year and thus get less of a refund.
- It may well be that corporations have many loophole...more

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Sep 18, 2011 Chad rated it 5 of 5 stars

Shelves: politics-social-issues, economics

Our current tax system is absolutely a mess. If a committee was assigned to come up with the most inefficient and ineffective tax system that simultaneously caused great damage to the health of the economy- they still would not be able to come up with something that is as bad as our current system. Our current tax system is a Frankenstein mix of decades and decades of tax law being passed on top of each other (with various influences of both parties) which then goes to the regulating body (The I...more

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Oct 19, 2009 Jelinas rated it 2 of 5 stars

I got this book from a friend who recommended it because he agrees with the concept.

Written by a politician and a libertarian pundit, this book explains the FairTax proposal.

I first heard of the FairTax when Republican presidential candidate Mike Huckabee backed it during his 2008 presidential run. Getting this book from my friend provided me with the opportunity to finally find out what the FairTax was all about.

It's an interesting proposal, certainly. I can understand the appeal of having a fl...more I got this book from a friend who recommended it because he agrees with the concept.

Written by a politician and a libertarian pundit, this book explains the FairTax proposal.

I first heard of the FairTax when Republican presidential candidate Mike Huckabee backed it during his 2008 presidential run. Getting this book from my friend provided me with the opportunity to finally find out what the FairTax was all about.

It's an interesting proposal, certainly. I can understand the appeal of having a flat percentage sales tax that comes with a monthly stipend for living expenses since I spend far less than I earn (You mean some people out there spend more than they earn? *chuckles* Oh, to be young and naїve again). And there certainly is a lot that I hate about our current tax system.

I know that some detractors claim that it would be too easy to cheat the FairTax system. But I wonder why I, an honest taxpayer, have to suffer because some chump decides to try and cheat the system. We honest folk are the ones who suffer most when someone else cheats on his taxes. We bear the cost of the countless amendments and changes to tax law. I'd be thrilled if more money was put into finding and punishing tax evaders as opposed to pumping money into reforming our current tax system.

However, the FairTax leaves some gaping holes that make me very uncomfortable. According to the book, the best way to implement the act would be cold turkey -- i.e. starting January 1st the year after it's passed, we would just start issuing the tax. No mention is made of whether retailers would adjust their pricing to reflect the new tax or if they would be given any help to understand the new policy. No mention is made of what would happen to the thousands of IRS employees that would be unemployed (yes, I understand that the fact that we need thousands of IRS employees just speaks to the current system's inefficiency. I never said that the current system was working fine).

And my biggest problem with the book was Neil Boortz's often inflammatory language. It smacks of propaganda to me and it makes a book harder to read for me, even if I agree with the policy underneath it all. I understand that Boortz is a radio talk show host and that this is just kinda how they talk. But I just didn't appreciate the tone of the book, that's all.

At the end of the day, though, I think we can all agree that the current tax system leaves much to be desired, and I have to admire Boortz for trying to bring a potential solution to the nation's consciousness and Rep. John Linder for sticking to his guns for ten years. It's more than I've done, I'll give them that.

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Oct 18, 2007 Smokey rated it 5 of 5 stars Recommends it for: tax-paying Americans, economists, skeptics of government

This book clearly details a vastly superior system of funding the US government than that currently in place. It also explains why and how "The Fair Tax" would work, work wonders on our economy, and represent the single biggest power shift away from D.C. and into the hands of the populace since the American Revolution.

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Nov 16, 2012 Russ Jarvis rated it 5 of 5 stars

Way to go Neal Boortz! Your book depicts one third of my dream to change (i.e. breakup) the political-economic power game that has evolved over the last 100 years in America. Such power is dangerous if held by the same person too long. We need this and two other firewalls against the human tendency to evil.

1. The Fair Tax (as so wonderfully described in this book) would place economic power back into the hands of working individuals.

2. The Balanced Budget Amendment to the US Constitution (anothe...more

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Aug 31, 2007 Ellen rated it 5 of 5 stars · review of another edition Recommends it for: Americans who are breathing

Someone gave this book to me at a property tax protest in Indianapolis. The arguments for the proposed FairTax legislation are impressive....so much that I'm now a believer. "The Fair Tax Book" is important stuff in spite of that putz, (coauthor) Neil Boortz.

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Nov 17, 2007 Alex rated it 5 of 5 stars Recommends it for: Americans

Visionary. If you don't think the U.S. tax overhaul recommended in this book is advantageous to you, you are either not an American or you are an American criminal, or you can't think critically on this issue--a not uncommon problem among us.

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Jun 23, 2011 Nathan Tensen rated it 1 of 5 stars

The FairTax is a sloppily written and offensive book for its outrageous statements (equating the ratification of the 16th Amendment with the terrorist massacre on 9/11 is beyond the realms of good taste, no matter how much you resent taxes)and for the insulting way it assumes everyone reading it can barely take time to focus on its serious arguments. Lower and flatter taxes is a fair discussion to have, but a national sales tax would be a deeply regressive system shifting more of the burden to m...more

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Feb 16, 2011 Carl Hurst is currently reading it

Shelves: fair-tax

If ever there was a time when the abolition of the IRS were to be a present day reality it is now. The FairTax Book by Neal Boortz has come along with an idea that may single handily save our country from financial destruction. The ideas brought forth in this book are truly insightful and in lightning. Finally smarter heads have come together with one combined purpose, to save our country from the financial rape and tyranny of the IRS. If you are like me and hate the fact that the government can...more

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Sep 12, 2007 Tim Cox rated it 5 of 5 stars · review of another edition Recommends it for: everyone who votes

Every adult in America should read this book and demand that their representatives support the FairTax. The only reason not to is so politicians can continue to reward the special interest groups funding them.

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Oct 16, 2012 Shea Mastison rated it 4 of 5 stars

This is an interesting, perhaps even revolutionary book. Boortz and Linder make a compelling case for why their FairTax is the more efficient way for the federal government to collect taxes; while allowing things like corporate taxes, death taxes, etc. to wither away.

The whole principle of taxation itself is philosophically challenging to me. With that said, if even a quarter of the outcomes the authors predict come true as a result of enacting the FairTax--we should all be hassling our represe...more

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May 07, 2009 Jamie rated it 5 of 5 stars Recommends it for: ...anyone who cares about America; ...anyone who hates the current complex tax system.

Recommended to Jamie by: Tony Colamarino

Shelves: finance, political, non-fiction

Excellent alternative to the income tax and all other alternatives out there, e.g., a flat (income) tax, a national sales tax, etc.

Very well thought out, especially since the authors guide you through the FairTax and how it came about - what things were considered essential (and why) and why certain things were rejected (and why).

The follow-up book,The Fair Tax Book II The Critics and the Truth, is excellent as well. After reading both of them, I'd be surprised if you did not become a FairTax ev...more

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Mar 08, 2007 Tiffany Saint rated it 5 of 5 stars · review of another edition Recommends it for: Anyone Interested in keeping the governments dirty hands out of your money...

If you are a fan of Boortz'a radio show you already know how this book is going to read. If not, be careful, you might get your feelings hurt.

Wonderful!

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Sep 01, 2007 Lavon Thorpe rated it 5 of 5 stars · review of another edition Recommends it for: everyone

This is the best book I have read this year. Very enlightening. Our country would be in a better place if we could adopt this system.

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Aug 22, 2007 Kevin rated it 5 of 5 stars

Shelves: integrate

Yes. Time to get rid of the current tax code that picks winners and losers and have a fair tax for all!

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Jul 06, 2007 Ashley rated it 5 of 5 stars

a political read which is not what I would typically call entertaining, but it's very important and right on!

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Jan 04, 2009 Louis rated it 4 of 5 stars

A well-written, concise and easy to understand book about a brilliant new tax plan that would rid us of an unfathomable and growing tax code riddled with loopholes for people and companies that donate to politicians in exchange for favors. This plan would rid us of the IRS and the intrusions associated with that agency into our lives, and it would take away the ability of self-righteous politicians to manipulate our behavior through the tax code. A quick, easy read that everyone tired of onerous...more

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Apr 26, 2010 James rated it 2 of 5 stars

Easily read. Boortz' motive is to cut the tax code to a simple rule. It's an important motive. The complexities in our tax system, the central resource management mechanism in government, are ugly, but necessary. Cutting them out without some elegant solution isn't the answer. His faith that there is one was inspiring to me while I was in school for economics, but I came up with better ideas just while reading it in a second-year Macro course. It's simplistic and doesn't even seek to process the...more

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Nov 25, 2012 Jamie Belanger rated it 5 of 5 stars

The FairTax Book is a quick read -- I read the whole thing in a single day, most of it in one sitting. But there is a lot of information crammed in there. I first heard about the FairTax several years ago, and every so often I spend some time perusing their website for information. So I went into this book already knowing a good amount. There were a few aspects of the plan that I did not know.

Every American should read this book, or at least read the FairTax website. We didn't always live under...more

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Oct 06, 2012 Russ rated it 3 of 5 stars

The FairTax Book seems to pop up in conversations every now and then. I read the book in 2005, and, although I like the idea of taking on the IRA and tax system, FairTax doesn't quite hit home. For example, not much is said about the philosophical nature of taxes, which is problematic and probably is what lead to the creation of the book to begin with. Many, if not most people who are going to read a book about ending the income tax are probably not interested in whether or not a tax solution ma...more

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“In the next 25 years, we will see a 100 percent increase in the number of American retirees. The number of workers, however, will increase by only 15 percent. Given those numbers, how can these programs survive? Under our current tax code, these programs can be maintained only by increasing the tax on those who work, reducing benefits for those who have retired or by increasing the age of retirement.” — 1 person liked it

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